Sometimes they do ring a bell at tops and bottoms in the markets. It’s not surprising this dude works for Barry Ritholtz. Barry has always hated gold as an investment and missed out completely on the 2000 to 2011 bull market. Time will tell.
Mr. Market is struggling to move on from Turkey worries, and Macy’s disappointing results are a drag as well.
While the Turkish lira TRYUSD, +4.4874% is continuing to recover, Recep Erdogan & Co. are ramping up their tariffs on American goods. Turkey’s leaders describe today’s move as “retaliation for the conscious economic attacks by the United States.”
But this geopolitical angst hasn’t been doing that much for gold GLD, -0.78% , which is trading around levels last seen in January 2017. And that brings us to our call of the day from A Wealth of Common Sense’s Ben Carlson, who suggests that the safety play’s future isn’t so bright.
“I don’t think you can rule out the possibility that gold’s GCU8, -0.80% value to society could be called into question in the decades ahead,” Carlson writes at his blog.
What’s the problem? He points to the disruption-minded tech sector and suggests that post-boomer generations might not take as much of a shine to the metal.
“Isn’t it possible faith in gold could potentially die out with the older generations?” asks Carlson, who is Ritholtz Wealth Management’s director of institutional asset management. “Doesn’t technology present a massive risk to gold’s standing as a store of value going forward?”
The idea could be that Silicon Valley is providing other vehicles for hoarders.
Yet he isn’t gaga over cryptocurrencies such as bitcoin BTCUSD, +5.04% , which has been called “digital gold.” His take on cryptos: “It’s going too far in the other direction to assume bitcoin or something similar will completely replace gold.”
Carlson also expects resistance to his musings: “Cue the hate mail from the gold bugs.” And he does throw the metal’s fans some bones.
“I understand some of the reasoning behind the fact that people still put a lot of faith in the yellow rock — it’s survived as a store of value for thousands of years and can act as an uncorrelated asset,” he writes.
Russia and China should read this guy’s brilliant analysis. They obviously are idiots accumulating so much gold. What could they be thinking?
“He points to the disruption-minded tech sector and suggests that post-boomer generations might not take as much of a shine to the metal.”
Oh Yes! I put sooooooo much value in what tech programmed post-boomer generations think.
Wow! What a shocker, Barry Ritholtz is jewish.
The guy must work somewhere within the Federal Reserve System or a government intelligence agency.
As J.P. Morgan famously said, “Gold is money, everything else is credit”. I can’t imagine anything the tech sector can come up with that would change that. Maybe a lack of imagination on my part, but history is on gold’s side.
A jew badmouthing gold?? But he loves the “fed”.
Happy “Soulday”, your eminence.
Gold will remain an investment for forever. The burgeoning Indian and Chinese middle classes revere gold and revile fiat currency.
Australia has been hoarding gold as has China. Prior to Bernie Sanders, as he coincided with the present day demystification of DC corruption (Guttenberg’s Bible- now internet), gold was artifically depressed so the criminals could move their new A/O to the Pacific Rim countries- Australia as new Wall Street.
The Brexit was intended to place the rug in Australia after it is pulled from under We The People… Wee!
Urine was next on the agenda of the English and Swiss banking Filth… I look forward to drowning them in it.
Water, food, supplies, guns/ammo, community, barter and PMs
As usual, I’m buying the best Dip in two years.
SD Bullion
Oops…I left out communication, walki talkies, CB, Ham.
Agreed! If they are going to allow me to buy Silver at such a low price then I’m going to stack some more. When the hyperinflation comes, you’ll be able to purchase your “crew” for 1/10th oz Silver per day as it has been for most of human history. Some of us here will be able to field an army.
The world has three times more debt than “money” so you would have to wonder when will the house of cards collapse, and when it does come falling down what in the world will the world fall back on to replace fiat?
Silicon Valley and technology? Anti gold folks like to point out you can’t use gold in a vending machine, you can’t eat gold, you can’t go to the supermarket and buy food with gold. OK……………how are we to use Silicon Valley?
At some point in the near future the $US is toast as far as the reserve currency, from the reports of China, Russia, India, etc. Why are these countries selling US Treasuries and buying so much gold at these reduced prices, it should give pause to at least question why.
Rather than one mans opinion that the drop in the price of gold (per $US) is a harbinger of doom for the yellow rock.
From the Daily Pfennig a couple of days ago:
“…..China had taken control of the COMEX and was pushing down the price of Gold along with their renminbi to offset the tariffs, which would lead me to believe that as long as the Trade War is going on, Gold will be subjected to further price manipulation by the Chinese, who get the wink and nod from the U.S. Gov’t to do so… ”
Then again maybe the US is playing a cruel joke and allowing all this gold to be bought up with worthless paper and when the fiat system reaches zero, we whip out our Silicon Valley Visa cards!
The intentionally mislabeled, “Federal Reserve ” currency (bills, bonds and notes that support it) is not America’s problem.
The Constitution forbids counterfeiting; US securities (pools of “Mortgage Backed Securities- MBS”); “US” currency.
The amounts counterfeit are in excess of 1200 trillions. An impossible figure and proof counterfeiting has destroyed the European imposters in residence to the intentionally mislabeled “Federal Reserve”.
https://www.marketwatch.com/story/this-is-how-much-money-exists-in-the-entire-world-in-one-chart-2015-12-18
The counterfeit MBS are used in shadow banking “Bucket Trusts” to rob US taxes, pensions, SEC and launder drug and terror money for “sanctioned entities” of the US presently murdering American and Coalition Forces.
At least 11 children have been poisoned to death in Michigan through use of illegitimate recordings in MBS- aka, the MERS.
Gold is NOT an investment!!
Gold is an insurance policy against inflation(fiat currencies) that inflate to the point of worthlessness. Post boomer generations have no clue what money is, when asked. When the Chinese take over as the new hegemonic dollar (the SDR), the reality will strike real soon to those that do not understand the concept of “money”
“Gold is an insurance policy against inflation(fiat currencies) that inflate to the point of worthlessness.”
Barf. Worst insurance policy ever. Inflation is rampant, but gold and silver have been sideways or down for years.
I would dearly love to just break even one of these days. But as long as the banks are in control, we’re fucked.
Rdawg,
I never think of PM’s as how they relate to Fiat. That seems like a waste of time. I just look at history (you can even find the value of Silver in the Bible) and nearly all recorded human history shows us that you can buy a man’s labor for 1/10th of an ounce of Silver per day. It is really that simple.
That I can purchase an ounce of Silver for about $15 means that if it all goes to hell then I’ll be able to purchase labor for about $1.50 per day in today’s fiat. To me it shows that Silver is under valued at the moment. It is really a bargain.
Yes, yes, I am aware that the Roman soldiers each received one Denarius per day for their labors.
Trouble is, you can’t buy anything with silver or gold; practically speaking. You have to convert it to fiat first. So it is well nigh impossible at this point in time to de-couple the two.
I’m not so sure the PMs will have their day ever again. But not to worry, I have my stack. It just nauseates me when people tell me about “insurance”, or “inflation hedge”, when it has shown to be nothing of the sort of late.
Rdawg,
We all know PMs are a totally rigged market…how long they can continue the rig gig with all that is converging is anyone guess…but the Everything Bubble will burst…eventually. You can take that inevitability to the bank and deposit it…it will draw huge interest! (ok a bad pun)
PMs won’t just have a day again, they will have over fiat what they have always eventually had, THE LAST WORD. Hang in there.
Just before the Great Recession of 2008 they drove Gold down to a low of $681 and Silver to $8 and change. Of course they squeeze paper/margin players out at will.
To me it’s all about macro timing, being able to hold what you have bought (never buying on paper or margin) and taking proportional profit at the right times…that fits your situation…just don’t get greedy and be afraid to sell some…you will rarely get it perfect, sometimes you sell too soon…but better early then late.
If the time is not right just don’t sell and wait for the next rise that works for you.
When I sell the next time its not going back into dollars but into other hard assets. However, I’m buying the current dip.
Gold And Silver: Similar To 2008
http://investmentresearchdynamics.com/gold-and-silver-similar-to-2008/
All…Is another head fake from the Banksters starting ???
“Use of gold swaps and gold derivatives by the Bank for International Settlements, the gold broker for most central banks, increased by about 17 percent in July, according to the bank’s monthly report…The BIS’ July Statement of Account gives summary information on its use of gold swaps and gold-related derivatives in the month. The information is not sufficient to calculate a precise amount of gold-related derivatives, including swaps, but the bank’s total estimated exposure as of July 31 was about 485 tonnes of gold versus about 413 tonnes as of June 30.
That is an increase of about 72 tonnes or 17 percent. The increase came as there increasingly appeared to be a correlation between the gold price and the valuation of the Chinese yuan, both of which fell substantially during the month.
The BIS refuses to explain what it is doing in the gold market and for whom, engendering suspicion that it is helping one or more of its members to manipulate the currency markets through deception. To place the bank’s use of gold swaps in context, its current exposure of 485 tonnes is higher than the gold reserves of all but 10 countries. (documentation and links: BIS gold market intervention increased by 17% in July)”
I better get busy today selling all my PM’s to convert back to FED toilet paper. Thanks for the tip Barry!
**** They think the goy will read this and run to the “WE BUY GOLD” stores in droves. Who knows maybe the goy would be that dumb, or remember the “FLIGHT TO SAFETY is in the US 10yr T note illusion”.
Gold, oil and bitcoin are getting hurt right now due to dollar strength. The technical chart on silver is the worst – according to the pattern it will get down to $12/oz, and bringing gold down with it. If/when it does, I’m backing up the truck.
JP Morgan has the largest stash of silver on the planet =-as much as 770million ounces. Yeah, it must be crap. Gimme the chocolate bar
Steve…
Right you are..
Jamie Diamonds Dimon started hording silver five or six years ago and even said so publicly.
Today only, I will give any and all 50 cents on the Dollar for all the gold, silver, platinum, palladium, rhodium they wish to dump on my poor unsuspecting ass.
Why the fuck would anybody take you up on that?